Most of Oxford Street has been closed in the wake of the attack, which took place at around 13.45 at the junction with Stratford Place, opposite Bond Street underground station.
The victim was pronounced dead at the scene.
The Metropolitan Police said a number of arrests had been made, but that enquiries were continuing.
Sky correspondent Ashish Joshi, who is on Oxford Street, said there were "dozens and dozens" of police officers stopping any pedestrians going near the crime scene.
"We think the stabbing happened outside the Foot Locker shop, but that cannot be confirmed," he said.
"At the moment it is pandemonium on the streets leading up to the West End and it is effectively gridlocked. Read More
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